DA Hike Update: Let us tell you that in January 2025, the government increased DA by only 2%, increasing it from 53% to 55%. At that time, some disappointment was also seen among the employees, as the expectations were much higher than this.
DA Hike: There is good news for more than one crore central employees and pensioners. It is reported that the Dearness Allowance (DA) for July-December will be announced around Diwali. There will be a 3% increase in DA. In this way, DA will increase from the current 55% to 58%. Let us tell you that in January 2025, the government increased the DA by only 2%, increasing it from 53% to 55%. At that time, some disappointment was also seen among the employees, as the expectations were much higher than this.
What is the detail
DA is revised twice a year (every six months) based on the inflation data of the last 12 months and formula-based calculation. According to Labor Bureau data, the all-India CPI-IW for June 2025 rose by 1 point to stand at 145.
CPI-IW data for June is out
Let us tell you that the Labor Bureau has recently released the All India Consumer Price Index (CPI-IW) for industrial workers for June 2025, which was 145. With this, the average index for 12 months between July 2024 and June 2025 has become 143.6.
DA (%) = [(CPI-IW average × 2.88) – 261.42] ÷ 261.42 × 100
Now the CPI-IW average for the 12 months from July 2024 to June 2025 is 143.6-
= [(143.6 × 2.88) – 261.42] ÷ 261.42 × 100
= (413.57 – 261.42) ÷ 261.42 × 100
= 152.15 ÷ 261.42 × 100
= 58.2%
When will the DA hike be announced?
Although the new DA will be considered effective from July 1, 2025, the central government usually announces it in September or October, just before the festivals. This time too, the formal announcement of DA/DR hike can be made around Diwali. This dearness allowance hike, to be held in July-December 2025, will be the last hike scheduled under the 7th Pay Commission (7th Pay Commission), as the term of this commission ends on December 31, 2025. Although the 8th Pay Commission was announced in January 2025, the government has neither announced the names of its chairman and members nor issued its terms of reference (ToR) yet. There were indications from the government to prepare the ToR by April, but there has been no concrete progress yet.
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